Technology

Toronto to receive 200-person job boost as digitally-native services provider Globant announces $20 million USD investment

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Skilled Toronto professionals with a background in AI, machine learning, data analytics, and gaming will find new employment opportunities with Globant’s imminent arrival to Canada. 

Launched in Argentina more than two decades ago and with a presence in 18 other countries and a staff size of 24,500 workers, Globant is further expanding its operations to the north of North America. 

Arising out of the Toronto Global partnership, this expansion will bring further job prosperity to a region teeming with a technically skilled workforce and a thriving business ecosystem. 

The digitally-native services provider, which works with the likes of Google and Electronic Arts (EA), will invest $20 million dollars over the next three years to strengthen its North-American operations, having already opened seven US-based offices and four in Mexico.

“We are thrilled to welcome Globant’s globally-renowned, digital-first company to our city, and know the company will be a perfect fit for the diverse, innovative, and committed spirit of Toronto,” said John Tory, Mayor of the City of Toronto. 

Sara Wilshaw, Canada’s Chief Trade Commissioner and Assistant Deputy Minister at Global Affairs added, “Toronto is one of the world’s leading tech hubs, with an investment rate among the highest globally. It has attracted significant attention from international investors, accelerators, and startups in recent years. These investments create jobs and contribute to impactful economic growth.”

The outlay by Globant will be the latest in a slew of investments in Canada from international sources. Montreal saw $1.7 billion USD of foreign and Canadian investment arrive in the first half of 2022, creating some 4,700 jobs and 31 subsidiaries of local and international companies. 

Likewise, Dutch engineering and management consultancy Acardis purchased the Toronto-based IBI Group this month. This trend should come as no surprise, given the infrastructural development and globally-focused business development policies of Canada’s major cities over the last half of a decade.

Fitting this pattern, Globant’s emergence in Canada comes from its partnership with Toronto Global, a non-profit investment attraction agency focused on growing foreign investment in Toronto. Since its creation in 2017, Toronto Global has helped over 100 international businesses set up offices and subsidiaries across the country. 

As home to some 38% of Canadian company head offices, Toronto also provides half of the Canadian locations for the Fortune 500 companies that exist in Canada. On top of market research and business creation resources, Toronto Global is geared towards being the strategic partner for foreign businesses looking to develop a presence in Canada.

Despite positive signs from foreign investment schemes, Toronto is not immune to the current macroeconomic climate globally, facing the same challenges as the rest of North America and Western Europe. 

Increasing fuel prices and economic downturn are affecting the real income of the Toronto workforce like all others. Earlier this month, the Bank of Canada announced an interest rate increase of a whole percentage point in a bid to stabilize inflation. It’s important, therefore, that cities such as Toronto continue to encourage multinational organizations like Globant to bring jobs, investment, and opportunity to their workforce.

Disclosure: This article mentions a client of an Espacio portfolio company.

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